Siemens wins BBC contract

The German engineering conglomerate Siemens has won an outsourcing contract from the BBC worth €2.7bn (£1.9bn) and will acquire the broadcaster's IT unit, BBC Technology, it said yesterday.

Both companies declined to reveal the amount that Siemens Business Services paid for BBC Technology, but an industry source suggested it was in the "triple-digit millions" of euros.

The BBC said in a statement it expected to save about £30m per year for the duration of the contract, and added that the two-part deal covering both outsourcing and acquisition was the first of its kind in the media industry.

"The value and substantial savings created from the sale of BBC Technology and this procurement of our technology services is a significant step for us in ensuring the BBC is fit for the future," the corporation said.

SBS said it would take on the 1,400 employees of the BBC's technology unit as part of the contract. It added that the contract to run the BBC's IT infrastructure included networks, servers, desktops, telephones, broadcast system and its internet site.